Alkami Technology (NASDAQ:ALKT) Stock Price Target Cut by Needham & Company LLC

Key Points

• Needham cut Alkami Technology’s price target from $25 to $20 but maintained a “buy” rating, implying approximately 28.8% upside from the stock’s $15.53 price.
• Analyst sentiment has weakened broadly: Citizens JMP, Citigroup, KeyCorp, Craig Hallum and others issued downgrades. The stock carries an average “Reduce” rating and a consensus price target of $19.17.
• Alkami’s revenue rose 19.4% year over year to $134.9 million, but the company reported a $0.06-per-share loss versus the $0.20 consensus estimate, highlighting continued profitability concerns.

Alkami Technology (NASDAQ:ALKT - Get Free Report) had its price objective dropped by investment analysts at Needham & Company LLC from $25.00 to $20.00 in a note issued to investors on Thursday, MarketBeat reports. The brokerage currently has a "buy" rating on the stock. Needham & Company LLC's price target suggests a potential upside of 28.78% from the company's current price.

ALKT has been the topic of several other reports. Citizens Jmp downgraded Alkami Technology from an "outperform" rating to a "market perform" rating in a report on Thursday. Barclays reduced their target price on Alkami Technology from $21.00 to $15.00 and set an "equal weight" rating for the company in a research note on Monday, October 12th. Citigroup downgraded shares of Alkami Technology from a "market outperform" rating to a "market perform" rating in a research report on Thursday. KeyCorp lowered shares of Alkami Technology from an "overweight" rating to a "sector weight" rating in a research note on Thursday. Finally, Craig Hallum cut shares of Alkami Technology from a "buy" rating to a "hold" rating and set a $16.00 price target on the stock. in a report on Thursday. One research analyst has rated the stock with a Buy rating, eight have given a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Reduce" and an average target price of $19.17.

Alkami Technology Price Performance

Shares of ALKT stock opened at $15.53 on Thursday. The firm has a fifty day simple moving average of $16.91 and a 200-day simple moving average of $17.37. The company has a market capitalization of $1.66 billion, a PE ratio of -36.98 and a beta of 0.60. Alkami Technology has a twelve month low of $13.20 and a twelve month high of $24.47. The company has a current ratio of 2.13, a quick ratio of 2.13 and a debt-to-equity ratio of 0.98.

Alkami Technology (NASDAQ:ALKT - Get Free Report) last posted its quarterly earnings data on Wednesday, October 28th. The company reported ($0.06) earnings per share for the quarter, missing analysts' consensus estimates of $0.20 by ($0.26). Alkami Technology had a negative net margin of 9.21% and a negative return on equity of 7.68%. The firm had revenue of $134.91 million during the quarter, compared to analysts' expectations of $133.54 million. During the same period in the previous year, the company earned ($0.14) earnings per share. The business's quarterly revenue was up 19.4% on a year-over-year basis. Equities research analysts anticipate that Alkami Technology will post 0.15 earnings per share for the current fiscal year.

Institutional Trading of Alkami Technology

Institutional investors and hedge funds have recently bought and sold shares of the company. North Reef Capital Management LP grew its position in shares of Alkami Technology by 264.3% in the 1st quarter. North Reef Capital Management LP now owns 7,650,000 shares of the company's stock worth $119,876,000 after acquiring an additional 5,550,000 shares in the last quarter. JANA Partners Management LP boosted its holdings in Alkami Technology by 24.2% in the second quarter. JANA Partners Management LP now owns 6,747,707 shares of the company's stock worth $122,268,000 after purchasing an additional 1,316,319 shares during the period. Janus Henderson Group PLC boosted its holdings in Alkami Technology by 20.2% in the first quarter. Janus Henderson Group PLC now owns 3,855,334 shares of the company's stock worth $60,413,000 after purchasing an additional 646,898 shares during the period. Irenic Capital Management LP increased its stake in Alkami Technology by 27.0% during the first quarter. Irenic Capital Management LP now owns 2,675,151 shares of the company's stock valued at $41,920,000 after purchasing an additional 568,703 shares during the last quarter. Finally, The Manufacturers Life Insurance Company bought a new stake in shares of Alkami Technology during the 2nd quarter valued at about $46,927,000. Institutional investors and hedge funds own 54.97% of the company's stock.

Key Alkami Technology News

Here are the key news stories impacting Alkami Technology this week:

• Positive Sentiment: Third-quarter revenue increased 19.4% year over year to $134.9 million, slightly exceeding the $133.5 million consensus estimate. GAAP gross margin improved to 57.5%, while adjusted EBITDA rose to $26.3 million from $16.0 million a year earlier. Net loss also narrowed to $6.7 million from $14.8 million. Alkami Announces Third Quarter 2026 Financial Results
• Positive Sentiment: Connexus Credit Union renewed and expanded its longstanding relationship with Alkami, supporting the company’s customer-retention and digital-banking growth strategy. Connexus Credit Union Renews and Expands Partnership
• Neutral Sentiment: Barclays reiterated its “hold” rating, suggesting the firm sees limited near-term upside despite Alkami’s continuing revenue growth. Barclays Reaffirms Hold Rating
• Negative Sentiment: Alkami reported a GAAP loss of $0.06 per share, missing the approximately $0.20 analyst consensus by $0.26. Operating losses remained negative, reinforcing concerns that profitability has not yet caught up with the company’s strong top-line growth. Alkami Third-Quarter Earnings Report
• Negative Sentiment: Citizens JMP cut Alkami from “outperform” to “market perform,” KeyCorp downgraded it from “overweight” to “sector weight,” and William Blair lowered its view from “outperform” to “market perform.” The coordinated downgrades are likely the main reason the stock has decreased, reflecting reduced expectations for near-term upside. Citizens JMP Ratings

Alkami Technology Company Profile

Alkami Technology, Inc provides cloud-based digital banking solutions for financial institutions, primarily community banks and credit unions in the United States. Its platform is designed to help institutions deliver digital experiences across online and mobile channels while managing customer relationships and banking operations.

The company's products and services include digital account opening, online and mobile banking, payments, money movement, card management, financial wellness tools, data and analytics, marketing capabilities, and fraud prevention.

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